Fear and Panic are overwhelming the once excited and confident crypto community. Daily sell offs sustain what little volume remains and the entire space reeks of capitulation. The oversold conditions, a welcome opportunity at any other time, are unable to hold off the selling pressure created by Futures and short contracts. The generally pessimistic sentiment loiters despite the continuing investment and multitude of future opportunities for crypto applications. The pain from current losses is blinding the vision of a future inevitably transformed by crypto. And investors are losing focus of all the things it can do to better everyday life. Hence, here are a few reminders of why, despite current prices, Crypto is here to stay.
The biggest benefit crypto brings to the table is the reduction of financial fees. This is the number one reason why the banks hate and want to get rid of Bitcoin. PayPal charges 2.9 percent on regular transactions. On cross borders, their fees are 4 to 5%. Any cross border transaction accumulates fees every step of the way. On the contrary, crypto can reduces fees substantially due to the few “digital” moving parts it contains. For example, recently, Binance was able to transmit $600 million with only $7 paid in fees.
It take days, even weeks, for banks to process any amount over $10,000 and send it anywhere in the world. Bitcoin can do it in minutes and some of the more advanced blockchains like Dash can do it almost instantly. Also, crypto currencies can provide for intraday liquidity management. Where banks can transfer funds midday to meet payment and settlement demands.
Crypto currencies are the perfect tool for smart devices to conduct micro-transactions with each other. With a predicted 30 billion Internet of Things devices expected to exist by 2022, crypto becomes indispensable. Without it, the IOT ecosystem will not exist.
Crypto technology is far more efficient than current organizational systems. For example, Smart Contracts can save time, reduce human error, and minimize material cost. And best of all they are automatically enforceable. When all the term are met, the system releases the collateral. Plus, they can be updated On Chain instantly; changes are costless and convenient by any party, anywhere in the world. A real world use occurred in February 2018 when the R3 Corda blockchain was used to issue a letter of credit for US food and agriculture firm Cargyll. The transaction took 24 hrs instead of the usual ten days. And it facilitated a bulk shipment of soybeans from Argentina to Malaysia.
Decentralization is a major selling point for crypto. A decentralized system is censorship resistant and more secure as any attack will have to contend with a network of nodes instead of a central server. In addition, nodes can be spread all over the world allowing direct access to foreign markets. Also, the use of a shared blockchain allows parties to have transparent relationships. They both have real-time status, trust-less transactions, and auditing. And the immutability of the blockchain means that records between them cannot be altered.
In the end, crypto has become too indispensable to disappear; it has too much to offer. Corporations are now aware of its value and utility and are not about to abandon it. Crypto is a cost saving option and in life, everything is about cost; inefficiencies cost money. And any cost saving measure will translate into profits over a period of time.
Unfortunately, the realities of life are hitting every aspect of the crypto space right now. And that is that fiat cash still rules the world. A lot of projects and investors are losing massive amounts of money and they are unable to hold on to crypto any longer. Projects like Steemit and Consensys are feeling the pinch and are falling off the wagon. However, crypto has too much to offer and it’s just a matter of time before its worth is recognized and the prices renew.